Annual Report 2015–2016

All other new standards, amendments to standards and interpretations that were issued prior to the sign-off date and are
applicable to future reporting period(s) are not expected to have a future material impact on the NHMRC's financial
statements.
Revenue Accounting Policy
Revenue from Government
Amounts appropriated for departmental output appropriations for the year (adjusted for any formal additions and reductions)
are recognised as Revenue from Government when the NHMRC gains control of the appropriation, except for certain
amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been
earned. Appropriations receivable are recognised at their nominal amounts.
PART 5 financial report
External contributions
External contributions consist of:
a) joint funding contributions, which are contributions from industry and other third party funding organisations to a
particular project. These contributions are recognised as revenue in the period when the obligation from the third
party is due;
b) contributions from industry and third parties, which are untied to projects or a contract. These contributions are
recognised as revenue on receipt; and
c) third party contributions to a program managed by the NHMRC. These contributions are recognised when they
are due, in accordance with the contractual agreement with the third party.
External contributions are included in sale of goods and rendering of services.
Other type of revenue
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date.
The revenue is recognised when:
a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
b) the probable economic benefits associated with the transaction have flowed to the NHMRC.
The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to
date bear to the estimated total costs of the transaction.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any
impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made
when collectability of the debt is no longer probable.
Gains
Resources Received Free of Charge
Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined
and the service would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
Resources received free of charge are recorded as either revenue or gains depending on their nature.
Resources received free of charge consist of Australian National Audit Office (ANAO) audit fee and the ANAO does not
provide services other than financial statement audit.
Cash and cash equivalents
Cash is recognised at its nominal amount. Cash and cash equivalents include:
a) cash on hand; and
b) cash in special accounts.
Taxation
The NHMRC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax
(GST).
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Annual Report of the National Health and Medical Research Council 2015–2016